Consequences Of The Coronavirus – Contract Adjustment And Restructuring

With the outbreak of the coronavirus in Switzerland, various legal questions arise for companies, in particular with regard to the validity and amendment of contracts. If insolvency is imminent, measures to prevent bankruptcy are required. The following text provides an overview of the most important points in this context.

1. Background

To contain the outbreak of coronavirus (COVID-19), the authorities in Europe have taken various measures. In Switzerland, the Federal Council, on the basis of Ordinance 2 on Measures to Combat Coronavirus¹ , has ordered, among other things, that public and private events be banned (sec. 6 para. 1), that publicly accessible facilities be closed (sec. 6 para. 2), that human gatherings of more than five people be prohibited (sec. 7c) and that certain persons/employees be required to stay at home (sec. 10b f.).